The Indian E-commerce

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The Indian E-commerce
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Basics

• E-commerce has transformed the way business is
  done in India.
• According to Google India, there were 35 million
  online shoppers in India in 2014 Q1 and is
  expected to cross 100 million mark by end of year
  2016.
• According to a study conducted by the Internet
  and Mobile Association of India, the e-commerce
  sector is estimated to reach Rs. 211,005 crore by
  December 2016. The study also stated that online
  travel accounts for 61 of the e-commerce market.
• By 2020, India is expected to generate 100
  billion online retail revenue out of which 35
  billion will be through fashion e-commerce.
  Online apparel sales are set to grow four times
  in coming years.

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Demonetization Effect

• Demonetisation will cut down the growth speed ??
• No in the year 2016 in the nine months to
  September, the ecommerce sector pulled in just
  1.4 billion in fresh funding.
• Grocery e-tailer BigBasket, ticketing platform
  Bookmyshow and eyewear e-tailer Lenskart were the
  only three firms that pulled in serious money.
  BigBasket raised 150 million in March from an
  investor consortium led by Dubais Abraaj Group
  Bookmyshow closed a 81.5 million growth round in
  May from a group of investors led by New
  York-based private equity firm Stripes Group, and
  Lenskart raised 60 million from International
  Finance Corp., TPG Growth and other investors

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• Although Demonetization has impacted on cash on
  delivery policy but giants like Amazon, Flipkart,
  Snapdeal,etc. agrees that demonetization is good
  for e-commerce industry.
• To tackle demonetization, e-commerce platform
  added Credit card on delivery resulting into big
  success as Amazon witnessed 10 times growth.
• CCAvenue got 40increase in online transaction
  while Paytm has more than 7 million transactions
  per day.
• Mobile payment transaction value is likely to
  register over 150 growth to cross 2000 trillion
  by FY2020-21.

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Development Factors

• The major factor is countrys huge uptake of
  mobile phones.
• India is biggest consumer of mobile phones with
  two times cheaper data plans than China and three
  times than United States.
• India expected to see more mobile shopping as
  people will switch from 3G to 4G.
• Young people shopping via smartphones are already
  responsible for sharp increases in India's online
  spend and with70 per cent of the population
  below the age of 35, millennials are expected to
  continue driving rapid digitisation even further.

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Potential

• Transfers and cash currently dominate the online
  payment landscape, with 27 per cent of the market
  preferring bank transfers, followed by cash on
  delivery at 22 per cent.
• However, as the country's payment infrastructure
  develops, new methods are expected to rise in
  popularity.
• E-wallets, the most popular payment method
  worldwide, are slated for rapid growth in India.
• Although just eight per cent of India's online
  shoppers use an e-wallet today, the country's
  mobile wallet market is projected to reach 5.1
  billion in 2020, according to Worldpay.

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